Economy of Brazil

Economy of Brazil

According to businesscarriers, Brazilian GDP 502 billion US dollars (1.6% of world GDP), GDP per capita – 2908 dollars (2001). Unemployment 10.5%, inflation – 12.5% ​​(2002). Sectoral structure of the economy: services 56.8% of GDP, industry 33.9%, agriculture 9.3% (2001). In the structure of employment, the share of agriculture is relatively higher – 23.1%, while services and industry are lower – 53.2 and 23.7%, respectively.

The extractive industry accounted for 2.9% of GDP in 2001, incl. 2.4% – for oil and gas production and 0.5% – for the extraction of minerals. In terms of proven oil reserves and production (respectively, 1.2 billion and 66.3 million tons in 2001), Brazil ranks third in Latin America after Venezuela and Mexico. The most productive field is the offshore Campus Basin north of Rio de Janeiro. Although the production of crude oil is growing (5% in 2001), Brazil has not yet reached self-sufficiency in it: crude oil consumption amounted to 85.1 million tons in the same year. Imports of oil and petroleum products reached 4.3 billion dollars in 2001, while as exports – $1.7 billion. 28% of imported oil comes from Nigeria, 26% – from Saudi Arabia. By the size of oil refining facilities located on its territory (87.9 million tons), Brazil is noticeably superior to all other countries in Latin America. Exploration and development of most oil and gas fields in Brazil, as well as the processing of the bulk of crude oil, is carried out by the state-owned company Petrobras (12th among the largest oil companies in the world).

Proven reserves of natural gas in 2001 amounted to 0.22 trillion m3, production 38.5 million m3. 58% of gas is produced in offshore fields, the largest of which are the Campos and Santos basins. The share of natural gas in the energy balance of the country was 3% in 2001, but it is planned to increase it to 12% in 2010.

Brazil is the world’s largest producer and exporter of iron ore. In 2001, 210 million tons of ore with a metal content of 125 million tons were produced. 155.7 million tons of ore and pellets were exported to 40 countries of the world. Main importers: Japan, Germany, China and the Republic of Korea.

Brazil ranks 4th in the world in terms of proven reserves and 3rd in bauxite production (respectively 1.8 billion and 13.2 million tons in 2002). 81% of their production is provided by the MRN company, in the share capital of which public and private Brazilian capital, as well as foreign capital represented by the largest TNCs, take part. Gold production in 2001 was 52.4 tons – 12th in the world and 2nd in Latin America. Reliable gold reserves were estimated at 2 thousand tons.

The manufacturing industry is the most developed and diversified in Latin America, in some positions it has reached the world level. In the total volume of its production, the largest share belongs to the production of machinery, equipment and vehicles – 23.4%, the oil refining and petrochemical industry – 14.6%, the food industry – 14.6%; chemical, pharmaceutical industry and production of plastic products – 12.4%, ferrous and non-ferrous metallurgy – 10.2%. Among the 100 most significant in terms of production and sales of manufacturing products in 2001 are diesel fuel – 33.3 million m3, motor gasoline – 21.0 million m3, passenger cars with engine capacity up to 1000 cm3 – 826 thousand units, sugar sand – 17.1 million tons, cell phones – 16.1 million units, nitrogen, phosphate and potash fertilizers – 11.1 million tons, refined soybean oil – 2.7 million tons, household refrigerators – 4.8 million units, tractors for tillage – 34.1 thousand units, as well as aircraft and other aircraft devices weighing St. 2 tons and less than 15 tons, for the production and export of which Brazil occupies one of the leading places in the world.

Brazil has a diversified and efficient agriculture and is among the world leaders in the production and trade of a number of agricultural products. In 2001, 59.2% of the conditionally net agricultural production accounted for plant growing and 40.8% for animal husbandry. Soybeans (25.1%) and sugarcane (16.7%) had the largest share in crop production, beef, chicken meat and milk (respectively 51.0, 20.0 and 17.4%) in livestock products. Land suitable for agricultural production is concentrated in the hands of a small number of the largest farms: 2.22% of farms with an area of St. 500 hectares account for 56.6% of the total land. The development of crop production was facilitated by the achievements of genetic research in agriculture. For the production of oranges (18, 7 million tons in 2002) and sugar cane (360.6 million tons) and the export of concentrated orange juice (812.5 million dollars) Brazil ranks first in the world in the production and export of soybeans (respectively 41.9 million tons and 2725.5 million dollars) – 2nd place in the world after the United States. In addition, Brazil is the world’s 2nd largest producer of beef (7136 million tons) and chicken meat (7040 million tons), as well as an exporter of poultry meat (1395 million dollars). Fishery products account for only 0.4% of GDP, but it employs approx. 800 thousand people The government is pursuing a long-term fisheries development policy that includes the leasing of foreign fishing vessels and fish farming in marine and inland waters. The total production of fish and other marine and freshwater products in 2000 amounted to 802 thousand tons. providing for the rental of foreign fishing vessels and fish farming in marine and continental waters. The total production of fish and other marine and freshwater products in 2000 amounted to 802 thousand tons.

In 2001, 1.3 million people were employed in all modes of transport. The main type of transport is road: 56% of freight and 96% of passenger traffic. The total length of roads is 1.7 million km, 9.3% of them are paved (2000). Railway transport accounts for approximately 21% of transported goods. The total length of railways is 30.4 thousand km, of which 2.1 thousand km are electrified. In 2000, the freight turnover of railways amounted to 154,870 million tkm. Privatization in con. 1990s state railway network stimulated the development of the industry. Air cargo turnover amounted to 1,534 million tonne-kilometres, and passenger turnover — 45,812 million tonne-kilometres. The total number of airports is 3365, incl. 665 – with a paved runway. Of these, 7 – with a runway length of St. 3047 m. Brasilia, Rio de Janeiro and Sao Paulo have the largest international airports. Approx. 18% of all cargo. The length of waterways is 50 thousand km. Of the 24 major Brazilian ports, only a few are privately owned. The most important port is Santos (Sao Paulo) – 42.7 million tons of cargo, approx. 20% of the country’s total port cargo turnover (1999). Other leaders include Tubarao, Rio Grande, Paranagua (Rio de Janeiro), Salvador, Santos, Vila do Conde, Itahai and Recife. The length of oil pipelines is 2980 km (crude oil) and 4762 km (petroleum products) (1998). The length of gas pipelines is 4260 km. Communication enterprises employ 215 thousand people. (2001). In 2002, there were 31.6 million individual landlines and 49.4 million cell phones in the country.

Trade enterprises employ 5.4 million people, incl. 745 thousand people in the wholesale, 3.95 million people. – in retail trade and 0.7 million people. – in other types of trade (2000). Of the total trade revenue received, 38.8% came from wholesale and 38.3% from retail.

From 1992 to 2001 the number of foreign tourists increased from 1.7 to 4.8 million people. In 2001, the country accounted for 33.2% of the total number of tourists visiting Latin America. The receipt of foreign exchange from the tourism business in 2001 amounted to 3.7 billion US dollars.

The Central Bank pursues a restrictive monetary policy. In order to curb inflation, he in 2002 and in the beginning. 2003 repeatedly raised the discount rate, bringing it up to 26.5% in May (24.1% in January 2003). The volume of credit transactions in the financial system of Brazil (in current prices) from December 2001 to April 2003 increased by 16.7%. More than 96% of all transactions are in the private sector of the economy. The amount of required reserves of financial institutions in the central bank account increased from 63.2 billion reais in December 2002 to 129 billion reais in April 2003. March 2002 $193 billion. The average daily turnover of securities in 2001 on the São Paulo Stock Exchange (shares) was $227.3 million, and on the Rio de Janeiro Stock Exchange (bonds) – $474.8 million.

State budget revenues in 2001 were 22.9% and expenditures 23.9% of GDP, with a deficit of about 1% of GDP. Tax collections in 2000 amounted to 32.4% of GDP. Of these, 22.1% came from federal taxes, 8.8% from state taxes, and 1.5% from municipal taxes. Domestic public debt $185.2 billion (42.0% of GDP), external public debt $64.2 billion (14.6% of GDP) (2002).

Brazil is characterized by a large unevenness in the distribution of incomes of the population. The wealthiest 10% account for 47.9% of all income, while the poorest 10% of the population receive only 0.8%. More than 25% have incomes of less than $2 a day, 13% have incomes of less than $1 a day. In 2001, there were 8 million Internet users in the country, and there were 62.9 personal computers and 385 wired and mobile phones per 1,000 inhabitants. The Human Development Index was 0.757 in 2000, 73rd in the world.

Foreign economic sphere. Brazil is deeply integrated into the international division of labor, and the state of its foreign economic parameters, due to the size of the country, has a significant impact on the conjuncture of world markets. A significant devaluation of the real in 2002 contributed to the growth of exports, as a result, the trade balance exceeded $13 billion for the first time since 1993. Exports amounted to $60.36 billion, imports – $47.22 billion. Brazil’s largest trading partners are the EU and the US, and from Latin American countries, Argentina and Mexico. Trade turnover with Russia increased from $465 million in 1995–97 to $884 million in 1999–2001.

The commodity structure of exports is dominated by finished products – 54.7% in 2002, while the most significant items are aircraft – 3.9% and passenger cars – 3.3%. Commodities account for 28.1% of exports, incl. 5.0% – for iron ore.

The most important import items: raw materials and semi-finished products – 49.7%, machinery and equipment – 24.5%, fuels and lubricants – 13.3%, consumer goods – 12.5%.

Brazil in the 1990s implemented effective measures to attract foreign capital. He was admitted to the local stock market, to previously closed sectors of the economy – oil, telecommunications, mining, energy, domestic transport, insurance. The conditions for access to the banking sector have been significantly improved. The volume of accumulated foreign investment in 1990-2001 increased from 37.1 to 154.4 billion dollars. The largest investor is the United States – 37.4 billion dollars, or 24.2% of the total investment. This is followed by Spain – $23.4 billion (15.1%), the Netherlands – $12.0 billion (7.8%), France – $10.5 billion (6.8%). In the sectoral distribution of investments, the services sector and the manufacturing industry are leading – respectively 56 and 40.6% of the value of the inflow of capital investments in 2002. Only 3, 4% of investments were invested in agriculture. The most attractive sectors of industry and services for investors are the food industry (10% of investment inflow), trade (8.0%) and the financial sector (6.4%). In 2001, foreign banks accounted for 27% of the assets of the banking system and 44% of the assets of private banks.

Thanks to targeted economic policy measures, Brazil’s external debt decreased in 1998-2002 from $241.6 billion to $228.7 billion. The ratio of interest payments on debt to exports of goods and services decreased from 28.1% to 22.2%. Bilateral and multilateral debt to foreign public authorities in 2002 amounted to 25.4% of the total debt.

Economy of Brazil